"We will utilise proceeds in marketing, strengthening the tech platform and improving distribution. The funds will also help strengthen our inventory light business model, acquire more customers to bolster our flash sale dominance and build a more cohesive brand," FashionAndYou CEO Aasheesh Mediratta told PTI.

He, however, declined to name the new investor on board.

The company is eyeing raising an additional $5-10 million in funding early next year to fuel its growth plans.

Mediratta said the company is looking at setting up two more delivery centres in Surat and Bangalore to increase the efficiency, in addition to its existing centre in Gurgaon.

Besides, the company plans to bring in a mobile app for the Android platform by September to cash in on the burgeoning number of smartphone users shopping using their handheld devices.

FashionAndYou, which claims to have over 5.5 million registered users, gets a majority of its business from women's ethnic wear and fashion apparel categories, followed by fashion accessories, footwear and home and living.

"The focus remains on expanding differentiated supply in the key categories and further strengthening international alliances," he said.

The online fashion and lifestyle industry is expected to grow to $15 billion by 2020.

"We are looking at more funds, something like $5-10 million early next year," he said.